
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 18, 1990                   TAG: 9004180495
SECTION: BUSINESS                    PAGE: B-7   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: WHITE SULPHUR SPRINGS, W.VA.                                LENGTH: Short

CSX READY TO RUN RF&P OPERATION

CSX Corp. will not reopen its bid for RF&P Corp. but is prepared to assume operational control of RF&P through its majority position on the RF&P board, says CSX Chairman Hays T. Watkins.

Watkins told stockholders Tuesday at the annual meeting of CSX, a Richmond, Va.-based transportation and real estate company, that RF&P is essential to CSX's rail operations. RF&P is a 100-mile railroad between Richmond and Alexandria.

"When CSX was created in 1980, the Interstate Commerce Commission gave CSX the power to control RF&P. That is a power we have not exercised but which is available because six of the 11 RF&P directors are present or former CSX officers."

Watkins said he and both companies' officers still believe the $385 million offer CSX made for RF&P on Feb. 20 was "fair and equitable." CSX backed out of the deal a month later after a number of analysts questioned whether RF&P real estate assets had been undervalued.

"Unfortunately, there came a time when statements were made by people in Virginia - mostly uninformed statements regretfully - that the RF&P was worth more," Watkins said.

Only one shareholder questioned the aborted merger during CSX's annual meeting at The Greenbrier resort.

by CNB